Life Insurance Cover To Keep You And Your Family Secure
The only way to ensure monetary assistance during a serious illness
, accident or even death is to apply for life insurance cover. There is a common misconception among the young and the healthy, for some reason they feel they do not need life insurance. Nobody knows what lies around the corner and when the tables will turn. It is indeed possible that misfortune will befall you when you least expect it. Although it is not humanly possible to prevent death and destruction, making sure you have adequate insurance is possible. Getting life insurance may also bring about tax benefits. You should seek professional advice on how it can benefit you and to what extent you are eligible for tax concessions.There is another reason, which prompts the necessity of insurance coverage. With peoples changing habits, lifestyles and the rise in prices, taking out an insurance policy is always an investment, something that you can turn to when you are desperately in need of money. It will help you out if you meticulously plan your finances and make sure that you always leave aside some money to pay your premium. With new diseases rearing their ugly heads and old illnesses taking new forms, unexpected deaths are no longer unexpected. Taking a life insurance policy is always a big help in such situations.
Here are some of the common types of life insurance cover available in the market. The basic parameters that classify life insurance are the number of years for which you are taking the policy, the premium amount to be paid and the benefits involved. Various rules and regulations govern each policy. These rules and regulations depend upon the company from which you are getting the cover. Though the basic rules will be the same, there might be small variations that make a huge difference.
The two broad categories of life insurance are Term Life Insurance and Permanent Life Insurance. Term Life Insurance, just like its name, is prepared for a fixed period. It may be a 5, 10, 15 or 20 year fixed policy. If death occurs during the time of insurance policy, the cash benefits are paid to the beneficiary. If the term ends and you do not renew your policy, there will be no coverage. Therefore, if death happens after the coverage period then, unfortunately, there will be no cash benefits. The advantage is that since there is no fixed premium, you can decide on the premium you want to pay. It is a great relief for people who have financial problems. You can easily renew the policy at the end of the term. The various types of Term Insurance are Level Term, Increasing and Decreasing Term, Renewable Term, Group Term and Convertible Term Insurance.
Permanent Life Insurance, though a bit expensive caters to specific needs. Permanent Life Insurance lasts longer but you cannot change the policy at any time nor can you end it. You have to pay the premium amount for as long as you live and the amount will be distributed to your dependents after your death. You should pay the premium amount regularly and you can even pay a surplus amount. This amount will be stored in a different account and your family will benefit from it as long as the company does well. However, this policy is not a good one when you choose it merely for investment reasons or tax exception. The various types of Permanent Life Insurance are Whole Life, Universal Life, Variable Life, Variable Universal Life and Premium Life Insurance. There are Life Insurance Coverage policies for senior citizens, children and even mortgage protection options.
Whatever your particular needs, there is life insurance cover that will meet your needs, you just have to do a little research.
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